Page 36 - BANKING FINANCE JUNE 2016

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Rs 27,000 crore in total--to advance completion  Exposure to e-market availability for getting
target to 2019 from 2022 assured prices

 To support farmers after calamities, special focus has  Reaping the benefits of contract farming (Win-
been given to ensure timely flow of credit, target is Rs Win situation)
9 lakh crore in FY17

 It should be ensured that the benefit of Minimum
Support Price (MSP) reaches all parts of country.
Remaining states will be encouraged to take up
decentralized procurement, effective arrangement of
pulse procurement

 E-market portal for connecting breeders and farmers

 Visible rise in yield of honey. 90% of domestic honey is
now exported

 Allocation of Rs 35,984 Crore for farm sector

 Government to allow 100% Foreign Direct Investment

(FDI) through Foreign Investment Promotion Mode

(FIPB) route in the marketing of food products  NPA Percentage under Agriculture: Bankers mindset

produced and marketed in India of financing to agricultural activities increases NPA

 Rs.87,765 Crore allocated for rural development portfolio is totally a myth. It is to be changed by

 Digital literacy scheme to be launched to cover 60 suitable efforts at all level. As per the presentation

million additional rural households made by Shri. S S Mundra, Deputy Governer in first

 Government to develop 300 'rurban' clusters CII Banking Summit, that contrary to popular
perception, stress is relatively much less in priority
 Government to spend Rs.850 crore in a few years on sector and restructuring mostly in large accounts.
animal husbandry, cattle and livestock breeding
Sector Mar Mar Mar Sept
 Rs.19,000 crore allocated for Pradhan Mantri Gramin 2013 2014 2015 2015
Sadak Yojana in 2016-17; in all, Rs.27,000 crore after (%) (%) (%) (%)
state contribution
Agriculture 8.2 7.4 7.5 7.9
 Five lakh acres of land to be brought under organic
farming in three years under Krishi Vikas Yojana Micro Industry 10.2 10.0 10.5 12.3

 89 irrigation projects to be fast-tracked. Small Industry 13.2 13.3 14.8 16.8

Medium Industry 20.2 23.6 27.0 31.5

Ways and means of seeing agricultural Large Industry 16.3 19.0 23.0 23.7

lending as viable profitable commercial The banks should concentrate on financing new good
business proposition with examples: viable high value agri. Proposals so as to reduce the
percentage of NPA under agricultural advances.
 Bankers should create awareness to the farmers
community that "change is inevitable" like as below:  Average income earned by the Agricultural loan
 Traditional farming to technical modern portfolio at par with other advances: Banks should
agriculture concentrate financing for investment credit rather
than production credit under agriculture. Big ticket
 Subsistence farming to sustainable farming advances like agri. infrastructure facility, food and

 Mono cropping to multiple cropping

36 | 2016 | JUNE | BANKING FINANCE

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